The African Reinsurance Corporation (Africa Re) has recorded a Gross Written Premium Income of $806.5 million for the first nine months of 2023, representing 18.9 percent growth over the $677.8 million reported for the same period of 2022.
This impressive performance is due to an improvement in underwriting price adequacy and new businesses written in the oil and energy line, Africa Re says the nine-month period of 2023, a slight increase of 4.5 percent over the figure of $386.6 million recorded during the same period in 2022.
The reduction in the retrocession shares of incurred claims amounting $27.6 million as against $62.6 million, combined with the overall increase in claims reported but highly retained by the Corporation led to a Net Incurred Claims totaling $376.8 million in 2023, a 16.2 percent increase over the figure of $324.0 million 2022.
There was also a significant outperformance of 46.4 percent in Net Underwriting Profit with a reported amount of $39.6 million in 2022, against $27.0 million after the first 9 months of the year 2023.
Read also: How Africa Re, IFC partnership offers lifeline to smallholder farmers
Particularly outstanding is the performance of investment income with a Profit of $45.0 million against $7.5 million loss in 2022, thanks to a strong recovery from the capital losses suffered in the valuation of the equity and bond investment instruments at the end of the year 2022.
“This boosted the overall net profit to $ 75.4 million at the end of the first nine months of 2023 from an overall net loss of $ 11.1 million, marking a remarkable improvement of 697.9 percent compared to the loss recorded at the end of the same period of 2022.
“The very good performance in the nine months of the year 2023, as acknowledged by all reinsurance industry analysts and financial rating agencies, is a promising indication for Africa Re that the year 2023 will end at a positive note on the account of the ongoing underwriting price adjustment, the recovery of the global financial markets from the lows of 2022 and a strong reinsurance demand,” Corneille Karekezi, group managing director of Africa Re said.
Read also: Risk transfer solution at scale will reduce climate change impact – Africa Re DMD
The African Reinsurance Corporation (Africa Re) is a leading reinsurance company headquartered in Lagos (Nigeria). As a premier reinsurer of the African continent, it boasts one of the highest premium income volumes and the strongest financial strength ratings.
Africa Re’s mission is to foster the development of the insurance and reinsurance industry in Africa, to promote the growth of national, regional, and sub-regional insurance risk underwriting and retention capacities, and to support African economic development.
Africa Re’s core market coverage is achieved through offices located in key cities: 6 regional offices (Lagos, Casablanca, Abidjan, Nairobi, Ebène -Mauritius, and Cairo), 3 representative offices (Addis Ababa, Khartoum, and Kampala), and 3 fully owned subsidiaries in Johannesburg (Africa Re South Africa), Cairo (Africa Re-takaful Company).
